Sales and Sponsorship Course with AEG's Bill Pedigo

Over the past couple weeks, my classmates and I have truly been blessed with a priceless opportunity to learn about sales and sponsorship from the best in the business. This was no typical course, as our professor was Bill Pedigo, Director of Global Partnerships, Anschutz Entertainment Group (AEG). Our first class was held at the Home Depot Center in Carson, CA, and the final two classes took place at the world-renowned Staples Center in Los Angeles, CA. We were continually engaged in group discussions and mini workshops throughout the duration of the course, which allowed us to get creative, voice our thoughts and opinions, and receive real-world feedback from the personal experiences Mr. Pedigo has had over the course of his career in sponsorship sales.

Sponsorship is a part of virtually all sports today, and whether we end up directly selling sponsorships or not, we will each interact with corporate sponsors at some level during the course of our careers. In fact, we sell every day whether we know it or not, so the goal of this course was to develop an approach to selling that at the end of the day satisfies the needs of clients, leads to sales, and most importantly, creates long-term relationships. The idea is that if we can break down the sales process for sponsorships, we can break it down in other areas of our lives as well, which can prove to be extremely instrumental over the long haul.

We knew from the moment we arrived at the Home Depot Center that we’d be in for a treat as the players from Chivas USA, an MLS franchise, came trotting by after practice. I had never been to the HDC before, and I have to admit, I’m a bit surprised that even my lofty expectations for this facility were exceeded. AEG developed and operates the Home Depot Center, a $150 million national training facility designated as an “Official U.S. Olympic Training Site” by the United States Olympic Committee. The site includes major facilities for soccer, tennis, track & field, cycling, lacrosse, rugby, action sports, beach volleyball, basketball and other sports. Once classes had concluded, we received a full tour of the compound and discussed the facility’s vast array of sponsorship inventory as Mr. Pedigo answered questions from the students as we reached each distinct venue.

The trip to the HDC was just the beginning of the first-class treatment Mr. Pedigo and AEG would offer us during the course. The following week, our classes were held inside the Staples Center in downtown LA. AEG’s Staples Center is world’s most profitable arena, conducting over 300 events annually. We began class on Thursday afternoon with a full tour of the Staples Center, again discussing the sponsorship inventory and explaining the way in which each corporate sponsor attempts to engage fans of the various franchises who call the facility home (Lakers, Clippers, Kings, Sparks, and Avengers). After the tour, we sat down in one of the special events suites to conduct the evening’s class, which concluded with an NHL game between the L.A. Kings and Florida Panthers. This was the first NHL game for many of the American students in class, and the first live hockey game for many of the international students.

Our assignment for the evening was to rate the top three in-game elements/experiences and describe the reasons for our rankings. Also, we were tasked with creating three new in-game sponsor activations for the L.A. Kings, specifying a target company or category for each. All-in-all, it was an unforgettable afternoon as the AEG-owned Kings held on to beat the Panthers in a thrilling 3-2 victory. I’d have to say that the “Toyota Human Spheres”, a sumo-suited hockey challenge on the ice, was my favorite experience.

The following morning, we received a surprise visit from the Director of Premium Sales at AEG who also shared his experiences and offered valuable insights into the processes and tactics used by AEG to leverage each of their operations. We had the opportunity to listen to a few excerpts from sales guru Greg Bennett, and we followed that up with some role playing among our classmates to practice what had just been preached. As someone who has been interested in sales and sponsorship since entering the SMBA program here at SDSU, this was perhaps my favorite and most beneficial experience throughout the entire year. I actually got to play one of the roles in the exercise, selling a fictional sponsorship for the Dodgers to Benedikt, my classmate from Germany, who was representing BMW. Bill Pedigo coached me during each part of the conversation, which made it an incredible experience.

We concluded our course with a trip outside to learn about AEG’s newest development, L.A. Live. L.A. Live is a $3 billion urban development project directly across from the Staples Center, and it will be home to the Nokia Theatre, 200 premier condos, 10 floors of a Marriott-Ritz Carlton five-star hotel, 11 restaurants, ESPN and its first live broadcasting outside Bristol, CT, headquarters for several large companies, and much more. The L.A. Live project is the beginning of turning downtown L.A. into a true tourist destination whether sporting events are being held or not. It is expected that more than 600 annual events will occur in the urban community with over 20 million eyeballs trafficking the area. The final project for the course is to identify two prospects that we feel would fill the last two L.A. Live Founding Partnership positions and explain why we chose each partner. We’re tasked with not only identifying companies that fit in with the business model and don’t conflict with existing exclusivities, but also coming up with a creative “signature element” of the sponsorship that will make it an ideal sponsorship for AEG’s corporate partners.

Corey Price (SDSU Sports MBA ’09)

About AEG

AEG, a wholly owned subsidiary of the Anschutz Company, is the world’s largest investor in entertainment and sports facilities; the world’s largest presenter of live sports and entertainment events; world’s largest owner of sports teams and sports events; owner of the most profitable sports and entertainment venues; world’s largest developer of sports and entertainment sponsorship and naming rights; has invested billions of dollars in sports, entertainment and media projects’ and reaches billions of people each year through its facilities, events, music, theater, festivals, sports, films and media assets. AEG has a long history of success in the global sports and entertainment industries including the STAPLES Center, Nokia Theatre Times Square, Nokia Theatre at Grand Prairie (TX), the El Rey Theatre (Hollywood, CA), the WaMu Theatre (Seattle, WA), Target Center (Minneapolis, MN), and three just opened arenas, Sprint Center (Kansas City, MO), Prudential Center (Newark, NJ) and The O2, a 28-acre development located in the eastern part of London along the Thames River which includes a 20,000 seat arena and over 650,000sf of leisure and entertainment use; sports fanchises throughout the world including the L.A. Kings, L.A. Riptide (MLL), the L.A. Galaxy and Houston Dynamo (MLS) in addition to overseeing privately held management shares of the L.A. Lakers (NBA).

Gene Upshaw – The greatest individual influence on the NFL to date

Anyone who has any interest in the NFL must know what Gene Upshaw meant to the game. On September 2nd I attended a memorial service held for Gene Upshaw at The Kennedy Center in Washington DC. I had already planned a trip to DC over one of our breaks prior to the unfortunate passing of Mr. Upshaw. Mr. Upshaw was a board member at The Potomac School, where I was the Assistant Controller before attending the SDSU Sports MBA program.

Mr. Upshaw did a tremendous amount for the NFL both as a player and an executive. He was a Hall of Fame guard who played for the Raiders from 1967 – 1981. Then after being a player he entered the executive ranks as the NFLPA’s Executive Director for the past 25 years. Among the several things he did for both the NFL and football as a sport three or four things stuck in my mind from research regarding his Executive Director career.

In 1987 Upshaw began the fight for NFL free agency, which was years after MLB had won free agency in the mid 70’s. In constructing the ‘93 CBA he risked a lot and was able to get NFL players free agency. Recently, he was also able to guarantee the players 60% of the total league revenue. Currently, the NFL has the longest streak of labor peace in the four major American professional sports (NBA, MLB, and NHL). Though the owners did opt out of the current CBA, there is still time for them to negotiate since it won’t expire until the end of the 2010 season.

One area Mr. Upshaw was criticized with was the retirement benefits for players no longer in the league. There are several players out there who did sacrifice their bodies for the game, but I think some other professional sports have had issues with their retirement plans. I also think Mr. Upshaw did not get the press exposure he should have when he explained some of the reasoning. This is a Gene Upshaw quote from an article by Mike Sando at ESPN.com earlier this year (http://sports.espn.go.com/nfl/news/story?id=3225087):

"Everyone can talk about all of the money we have in the pension plan. We have as much liability as we have assets; in fact, we are a little underfunded.

"But we are not going to take a pension from guys that have one coming and give it to someone else. We have to solve it a different way and we will."

From the quote it should be pretty clear that if they take from the current players they’ll be even more underfunded with the current liability exposure. I even recall last fall reading an article about some type of increase to the retirement benefits, but it didn’t make much press at all.

A thought I had is that Mr. Upshaw may have been thinking of conceding a % or two of the revenue sharing to be reapplied to the pension for all current and past players. Not sure how much that would be exactly but to pay the premium for disability benefits or dump into the pension probably would help. It would even make sense for the owners to share in matching the same % to the pension or benefits.

As I mentioned when I was in DC earlier this month I had the opportunity to attend Mr. Upshaw’s service at The Kennedy Center. A former co-worker of mine at Potomac currently works at The Kennedy Center and I spoke with several other former co-workers I saw at Mr. Upshaw’s Memorial which was an amazing event.

The music was amazing at the service and you could feel the emotion in the room before it started. When the service started Mr. Upshaw’s brother spoke and mentioned the significance of the number 63. In 1963 Gene Upshaw graduated high school, he wore #63 during his career in the pros, and he passed away at the age of 63. Some of you probably noticed the GU – 63 symbol that was on the fields & jerseys opening week of the NFL and is currently on the back of the player’s helmets. His brother also mentioned the things that were important to him like his sons, family, car and life. This was the first of many insights to Gene Upshaw the human being. He was a very amazing person and touched a lot of lives, but didn’t desire anything in return.

A couple of Mr. Upshaw’s sons spoke at the service along with several NFL figures. Each person gave insight into Upshaw as a person. Some talked about his passion for golf, costco, and public storage. A couple speakers mentioned him being late or fixing door knobs if someone’s office door was loose, all of which made him down to earth like everyone else.

Where he differed was in his desire to fight for what was right. He had a big heart and cared about others which made him a good Executive Director to fight on the players behalf. He also fought for others in his personal life outside of football. Another thing speakers mentioned was that he never complained. He just kept going and continued his hard work, which we all can learn from.

John Madden, who coached Upshaw on the Raiders, mentioned how Upshaw was the type of player a coach would occasionally seek out for guidance because of his leadership. At the end of Mr. Madden’s speech he was very emotional and you could tell how much he cared about his lost friend.

Tom Condon, SBJ’s #1 Most Influential Sports Agent, spoke about Upshaw who was one of his best friends and clients. Mr. Condon was funny, a great speaker, and also told of his admiration for Upshaw as a player before they met. A couple of the speakers mentioned that Mr. Upshaw’s wife had wanted them to keep their stories funny and concise. When Mr. Condon was in college he tried to imitate Upshaw’s (who was in the pros) elbow & arm pads only to have his coach make fun of him for even trying to compare himself to the professional.

Overall the speakers all spoke with great emotion, friendship, and complete respect for Upshaw. It was very unfortunate that Mr. Upshaw passed away, but he was able to touch & influence so many lives. He worked hard for everything he achieved, but also was human and cared about people.

Here are a few Upshaw articles I recommend reading that also served as some of my sources in addition to the several people I spoke to inside football and fans that followed his playing & executive careers.

http://www.nytimes.com/2008/08/22/sports/football/22upshaw.html?_r=1&pagewanted=2&oref=slogin
· Gene Upshaw, N.F.L. Union Chief, Dies at 63

http://sports.espn.go.com/nfl/columns/story?columnist=munson_lester&id=3549586
· When Upshaw spoke, everyone -- including owners – listened

http://sportsbusinessjournal.com/article/60060
· New NFL season opens, labor talks loom without key player

http://sports.espn.go.com/nfl/news/story?id=3225087
· Upshaw: NFLPA won't take from current pensions to help ex-players

http://www.nfl.com/news/story;jsessionid=6853F2F7363BC0FADBCA0D0848E3DEB9?id=09000d5d80a72310&template=with-video&confirm=true
· Tears, laughter at Gene Upshaw memorial service

If there are any mistakes I’ve made please let me know as I’m always open to correcting my mistakes.

Ben Seiz

1st Padres Game

Just as I was starting to feel guilty about not watching a Padres game at Petco Park this season, I was saved by divine intervention. With the MLB regular season winding down to its last weekend, I thought I missed the 81 chances I had to experience my first Padres baseball game in San Diego.But this weekend, over a dozen of my classmates and I were given an opportunity to volunteer for the “Shirts off Their Backs 2008” program hosted by the San Diego Padres. This program gave the fans an opportunity to purchase $1 scratcher tickets and the lucky winners would win 2 free tickets to the season finale on Sunday and also a signed Padres jersey right off the players back on the field, at the end of the game.

We were really excited to participate and raise money for the Padres Foundation that benefits pediatric cancer programs and youth baseball. As an extra incentive for volunteering, we were also given tickets to watch the Padres game against the Pittsburgh Pirates.Considering this was my first live baseball experience, I was really excited and looking forward to a good time. To be honest, baseball is not my favorite sport, but the “experience at the ballpark” is very unique. The experience starts about 90 minutes before the start of the game with kids taking practice swings at the “Park at the Park”, just beyond the outfield fence. As the crowd started piling in, it was great to see a large number of fans taking a shot to see if they were one of the “chosen ones” to get the free tickets and the player’s jersey. The not-so-lucky fans also accepted defeat gracefully by recognizing that the proceeds went to a good cause.

Petco Park is recognized as one of the best baseball stadiums in the country. The various activities that engage fans of all ages makes a day/night out at Petco Park a great experience for the entire family. I also came to realize how good we (the students in the Sports MBA program) have it here in San Diego. Not only do we have access to all the great things San Diego provides as a city, but as die-hard sports fans we have access to two major sports teams right in our own backyard. After tonight’s experience I truly understand why baseball is known as America’s “National Pastime”. On behalf of my classmates, I would also like to thank the Padres for having the Sports MBA class out at Petco and giving us an opportunity to contribute to a good cause.

Soccer United Marketing – Part Two in LA

This is a continuation of Brendan’s “Viva Mexico!” post on June 16th. Since then four of us are interning with Soccer United Marketing (SUM) and specifically helping with game day operations. In addition to this we are currently working on a project for the MLS looking to utilize new media with the Hispanic market.

On Monday, September 22nd we needed to leave class early to make it to LA by 4 PM in preparation for the Mexico vs. Chile game. The game was held on Wednesday Sept. 24th, but we had to head up there a couple days early to prepare. That Monday night we presented the first phase of our project to the MLS & SUM Director of Hispanic Business.

Tuesday, we headed to the Los Angeles Memorial Coliseum where the game was held. We primarily helped sponsors this day with any questions or setting up their areas in Futbol Fiesta. All of us got opportunities to work with key SUM sponsors and their activation agencies. Some of the sponsors we helped out were Allstate, Home Depot, and Adidas and some of the sponsor activation agencies were Octagon and Relay Worldwide.

On the day of the game there were more operational type duties ranging from preventing ambush marketing to escorting players or executives. We once again got opportunities to work with sponsors like Budweiser, AT&T, Jose Cuervo, and Coke. I worked with sponsors on the field level before, during and after the game including half-time. Prior to the game Nissan hosted a pregame on field exhibition game that had Marcelo Balboa among other former soccer players. Then we helped Allstate and other sponsors with field tours before the game. After the game we worked with Coke and Budweiser for Mexican National Team player signing in hospitality areas.

We were really busy throughout the game and it was unfortunate that Mexico lost 1 – 0. Next we’ll be flying to Phoenix in November to work another Mexican National Team game. A couple of weeks later we’ll be traveling back to LA, but this time to The Home Depot Center for the MLS Cup. We’re looking forward to the next two events and it’s been an amazing opportunity so far getting to work with several people from SUM & MLS.

Building PETCO Park

PETCO Park has established itself within the sports industry as not just a great venue for baseball, but a fantastic venue for entertainment. On Mon. September 22, the class had the opportunity to discuss its design and construction with three of the most important individuals involved.

During our morning class, with Coach Dennis Green, Erik Judson stopped by to discuss not only his experience with PETCO Park, but also analyze the current stadium issue which the Chargers are facing. Erik is currently working with JMI Sports, but was with the Padres front office during the stadium development and construction. Erik remains very close to the Padres organization as JMI Sports is owned by John Moores, who also owns the Padres.

During our afternoon class with Richard Andersen, Hadrian Predock, and Alan Petrasek not only spent some time talking with the class, but also sat in and offered feedback on a class presentation. The presentation was on stadium architecture and design and what the future holds for that segment of the industry. Hadrian was one of the lead designers of PETCO Park and the insight he was able to offer on the design elements put into PETCO Park was literally something no one else could offer. Alan, who works with Clark Construction, was able to offer a ton of insight on the factors that influence a project of this size, along with the struggles which this unique project had to overcome.

Not only does the program have tremendous access to a top tier facility, but the information and discussion with these three individuals offered a great understanding of the years of work that goes into making a project like this be successful.

Some Great Trips!

In the beginning of September I had the chance to go to a bullfight in Mexico City. Even though it is not a sport, it has great similarities in its structure as a form of entertainment. The bullring I went to is located inside a restaurant called ARROYO. This place specializes in not only Mexican food but Mexican traditions as well. Besides the bullfights, which they have organized every fall for eleven years now, the place offers a Mexican Traditions Festival that includes from food to crafts to music and dancing spectacles.

I also had the opportunity to talk to some bullfighters and business people involved which is a great way to understand what they do. It is really obvious that the bullfighters are good athletes; they need a set of physical skills to be able to do their job.

Overall it was an incredible experience because the festive environment among the fans and the passion and sensibility they have makes it a unique spectacle.

I also had the opportunity to travel to New York a few weeks ago specifically to visit both Yankee Stadium and Shea Stadium, both on their last year. My brother and I had tickets for a Braves@Mets game on Friday and for Rays@Yankees game on Saturday. However the first game was postponed because it rained.

The next day we went to the Yankee game in the afternoon. I have to say that it was an incredible experience just being there as a baseball fan, one that I will never forget. We didn’t want to miss the opportunity to go to Shea Stadium, so after the Yankee game we made it to the Braves@Mets second game of a double-header. It was a very long day with a lot of baseball, but it was a great day, one of the best days.

Veronica Nogueira

Afternoon at PETCO Park

Something that is very important to success in the sports industry is having the ability to work with individuals which have similar and/or different characteristics than you. Last week, the class was treated to an afternoon at PETCO Park to discuss this very topic.

As many people have heard, our class is lucky enough to be working with Richard Andersen from the San Diego Padres. Richard is the Executive Vice President and General Manager of PETCO Park. On any given event night, Richard will have approximately 1600-2000 employee’s which he and his staff are supervising and working with to make that event a success,

Part of what we discussed was that it is extremely important to understand the strengths and weaknesses which your individual personality may bring to an organization. An important takeaway here is that no personality is better than another, but that there are different ways to apply your personality to the organization. Finding the right balance between co-workers can have a significant impact on the overall success and tone of the organization.

During our class session at PETCO we analyzed our self-assessment tests (DISC personality assessment), and engaged in an open discussion on how to achieve the maximum amount of success while working within a large organization such as the Padres.

This was a great experience, and one which the class responded very well too. With the class just getting started, there will without a doubt be more posts to come. Stay tuned!